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On January 1, 2018, ABC rendered services in exchange for a $100,000, 3 year, 4% note receivable. Interest is to be paid each December 31st
On January 1, 2018, ABC rendered services in exchange for a $100,000, 3 year, 4% note receivable. Interest is to be paid each December 31st and principal will be remitted at maturity. The customer's normal borrowing rate is 8%.
Part A. Determine the amount of Service Revenue ABC can recognize on Jan 1, 2018
Part B. Determine the carrying value of the note at December 31, 2019:
Part C. Determine the Total Interest Revenue ABC will recognize over the entire 3-year lending agreement.
What do I need to do to solve this problem?
Periods 35910 496 69% 86 96 PV of $1 .89 82 70 .68 84 .74 .59 56 .79 68 .50 46 .// .f?.46 A2 Present Value of an Ordinary Annuity 69% 86 96 2.77 4.45 7.43 8.11 2.67 4.21 6.80 7.36 2.57 3.99 6.25 6.71 2.53 3.89 5.99 6.41Step by Step Solution
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